19 Reagan’s First Term Foreign PolicyAdopted a tough stand towards communismIntervention in Central AmericaContinued support to countries in communist threatLimited military interventionFailed peacekeeping attempts in Middle EastTerrorism

20 Reagan’s First Term Domestic Policy“Reaganomics”supply – side economicsTax breaks to businesses & wealthyOnes who will reinvest, encourage economic growthTrickle – Down economicsEconomic growth depends on increased amount of capital available to businesses

22 Election of 1984 Reagan (P) & George H.W. Bush (VP) won1st president since Eisenhower to serve 2 full terms

23 Reagan’s Second Term Foreign PolicyIran – Contra AffairPresidential aides sold weapons to Iran in exchange for freeing hostagesMoney went to support anti-communist reels in Nicaragua (contras)Presidential stance on ban on terrorism bargaining, aid to contras